Crypto asset manager Bitwise On February 2, announced it had filed a Form 211 with the U.S. Financial Industry Regulatory Authority (FINRA). If the proposition is accepted Bitwise is going to be able to deploy its shares openly via over-the-counter (OTC) desks and secondary markets.
The popular cryptocurrency index fund supplier, Bitwise Asset Management, hopes to get regulatory approval in America’s financial regulators so as to publicly record the Bitwise Bitcoin Fund on OTC markets. The Bitwise Bitcoin Fund (BBF) when accepted, will stick to the public quotation of the firm’s Bitwise 10 Crypto Index Fund that recently obtained regulatory approval.
The BBF will exchange on OTCQX Best Market and now Bitwise has not selected a ticker for your own fund yet. Bitwise President Teddy Fusaro clarified during the announcement that the fund has been managed since 2018 and the firm looks forward to an OTCQX public quotation.
Bitwise Chief Investment Officer: ‘There Is Significant Growth in Interest From Professional Investors in Accessing Bitcoin’
“We’re tremendously excited to choose the Bitwise Bitcoin Fund down the path lately taken by the Bitwise 10 Crypto Index Fund (OTCQX: BITW),” Fusaro said. “We’ve been handling this fund since 2018, offering investors a cost-effective, convenient, and secure way of gaining investment exposure to bitcoin, and are excited to potentially see shares of the fund offered on OTCQX,” that the crypto strength manager’s President added.
The Bitwise Bitcoin Fund will compete with the likes of Grayscale, a fund manager who has created numerous trusts which are sold on OTC markets. Grayscale also includes a fund that’s similar to Bitwise’s 10 Crypto Index Fund called the Large Digital Cap Fund.
Both companies recently removed the crypto asset XRP from both of these specific funds holding a basket of electronic currencies. While Grayscale has the chance to deploy the fund to a broader audience, Bitwise has had to keep the BBF strictly for private pensions by accredited investors.
“There’s significant increase in interest from professional investors in accessing bitcoin for a instrument to hedge their portfolios against rising inflationary risks,” added Matt Hougan, Bitwise chief investment officer. “Financial advisors, in particular, are taking note of the big allocations that hedge funds, associations, insurance providers, and traditional asset managers are making to bitcoin, and based on our recent survey of nearly 1,000 financial consultants, many are deciding that now’s the time to consider an allocation of their own.”
Meanwhile, exchange-traded notes and trusts like Grayscale are the only investment vehicles available to the public that give investors exposure to bitcoin and other digital assets. Folks are expecting the U.S. Securities and Exchange Commission (SEC) will approve a bitcoin exchange-traded fund (ETF) in 2021.
A number of crypto proponents think an ETF is going to be approved annually, as firms like Valkyrie Digital Assets and Vaneck are rushing for acceptance.